The NFL is now closer to moving back to Los Angeles with news that St. Louis Rams owner Stan Kroenke plans to build an 80,000-seat stadium in Inglewood, a move that would more than double the value of his franchise.
In the latest valuations released by Forbes.com, the Rams were dead-last, with a value of $US930 million. Meanwhile, teams in the top-5 TV markets (L.A. is no. 2) all rank among the eight most valuable teams with an average value of $US2.11 billion and those numbers are almost certainly on the conservative side as the Cowboys are probably worth closer to $US5 billion.
The Buffalo Bills, valued just above the Rams at $US940 million, recently sold for $US1.4 billion. If teams in the top-5 TV markets are undervalued at the same rate, they would be worth $US2.54-4.79 billion with an average of $US3.16 billion and there is no reason to think an L.A. team wouldn’t be at the upper-end of that range.
So, while a new stadium may cost Kroenke $US1 billion to build, he will more than make up for it with the increase in the value of the Rams alone.
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